An industry with only one producer has a demand curve of P = 90-Q, with price in dollars and quantity in thousands. The monopolist's marginal cost curve is MC = 30 + 2Q. What is the deadweight loss of monopoly in this industry? O $100,000 $37,500 O $72,667 $50,000

An industry with only one producer has a demand curve of P = 90-Q, with price in dollars and quantity in thousands. The monopolist's marginal cost curve is MC = 30 + 2Q. What is the deadweight loss of monopoly in this industry? O $100,000 $37,500 O $72,667 $50,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Question 9 Because a monopolist has market power, which of the following is NOT a characteristic of a monopolist? O It faces a horizontal demand curve O It faces a downward-sloping demand curve O When it produces an extra unit of output, it must lower its price for on all units sold O Its marginal revenue curve is below its demand curve
Assuming that the price is greater than the average variable cost, a monopolist maximizes profits at the output for which (picture a graph): O price is equal to marginal revenue in the downward part of the marginal cost curve O marginal cost is equal to marginal revenue in the upward sloping part of the marginal cost curve O average variable cost and average total cost are in the downward part of their curves and price is equal to marginal cost O average total cost is at the lowest point
Figure Monpo12: A Fim in An Imperfectly Competitive Industry Price MC Given: Q* = 120 P* = S4.00 PATC = S3.40 P* %3D ATC AVC PATC PAVC PAVC = S0.50 D MR Q* Quantity Refer to Figure Monpo12. Profits for this monopoly is about O $72 O No answer text provided. O $74 O No answer text provided.
Exhibit 10-4 $/0 MC ATC 24 /t 10 The non-discriminating monopolist in Exhibit 10-4 should: O Produce 10 units at a price of $36 per unit. O Produce 10 units at a price of $24 per unit. O Produce 10 units at a price of $40 per unit. O Produce 15 units at a price of $32 per unit. O We cannot determine what the firm should do without knowing its average variable cost.
The figure below shows the cost and revenue curves faced by a monopolist. The profit-maximizing output and price for the monopolist are: Figure 9.1 $/Q $30 24 222 420 22 20 10 0 50 100 150 117 MC ATC MR 200 AVC O 117 units and $14, respectively. O 150 units and $22, respectively. O 150 units and $14, respectively. O 117 units and $22, respectively. O 117 units and $24, respectively. D Q
QUESTION 23 If the monopolist shown in the following figure could practice first-degree price discrimination, the producer surplus would be: Price (dollars) 50 40 30 20 10 $0. $225. $450. $900. O $1,200. 30 50 60 MR 100 MC Quantity
The monopolist has constant marginal and average cost AC-MC=70 and faces the market demand P120-Q. Suppose the monopolist can perfectly price discriminate by setting a two-part tariff: that is, the monopolist charges the consumer a fixed fee Fand a per unit price p. What are the optimal values of Fand p that the monopolist sets? O F-$2500, p-$70 O F-$3500, p-$70 O F-$2375, p-$95 O F-$1250, p-$70 O F-$2975, p-$85
Suppose that single-price, single-product and single-plant monopolist faces the following demand curve: Q = 3000 – 20P. The monopolist's fixed cost of production is $5,000 and its average variable cost is 0.2Q. Find the profit of the monopolist. $12,000 $15,000 $21,960 O $17,500
When a monopolist spends money to make it harder for competitors to enter the industry, this is referred to as O deadweight loss. innovation protection. O x-inefficiency. rent seeking.
None
Assume the figure below represents the market for Turkeys. What is the dead-weight loss if this market is operating as a monopoly? Price 50 40 30 20 10 O $1500 O $4000 100 $1000 MR MC ATC Demand 200 300 400 500 There will not be a dead-weight loss since they will be operating at the market equilibrium Quantity
MC ATC AVC 8. MR 4 10 12 Quantity (units per day) The figure above represents a monopoly. This monopolist earns an economic profit of $ per day. 8.00 24.00 32.00 O 16.00 Price and costs (dollars per unit) 2.